July 27, 2012

We
sold JC Penney for a plus scratch; traded Deutsch Bank for a plus scratch when
we changed our mind on the purchase; and added some Netflix to larger accounts
when it dropped 20% in a day to a two year low on earnings news. We also added
Cisco ahead of earnings when it dropped down to $15. Juniper and Symantec
reported good earnings and rallied during the week. Ford forecast a $1 billion
loss in Europe this year but U.S. sales will allow the company to remain very
profitable. Both Ford and GM are cheap, as are the other issues we own.*****

July 20, 2012

We
switched Hewlett Packard and Dell to GE and Yahoo respectively. We also
repurchased Abercrombie is some larger accounts after it refused to give back
any of its pop of a week ago. We added shares of Morgan Stanley when it dropped
on disappointing earnings. We took a bad loss (percentage wise but not dollar
wise) on Alcatel Lucent and will not revisit that stock in the future.
We added shares of Ford and also shares of the SPDR Financial (XLF) to get more
financial exposure. Finally we repurchased BankAmerica
after they reported decent earnings and revenues but the shares backed off. We
are now almost 60% invested in the Model Portfolio.

*****

July 13, 2012

We
took a trading profit in Abercrombie when the shares popped on buyback rumors.
We aren’t a fan of buybacks although ANF would be doing it at the stock’s
recent low rather than a high as is usually the case with buybacks. We also
added a few shares of JP Morgan ahead of the earning’s announcement today at
under $34 per share.

The
S&P 500 seems range bound (1300-1400) and we aren’t expecting much for the
summer. We have been surprised often when making a boring
prediction but that is our best thought for now.*****

July 6, 2012

We
bought Alcatel at $1.65 (sold at $1.90 in February), Hewlett Packard at $19.95
(sold at $29 in February), Ford at $9.59 (sold at $12.40 in February) and JC
Penney at $21 down from $45 in February.*****

On Thursday ADP announced 186,000
private sector employment gain versus 100,000 expected. On Friday the Labor Department
announced an Employment gain of 80,000 with a gain of 84,000 private sector
jobs and a loss of 4,000 government jobs.
*****

During the week Barclay’s
announced a settlement with the authorities by paying a $450 million fine for
interest rate rigging. The CEO resigned but will get a $35 million golden
parachute. GlaxoSmithKline agreed to pay $3 billion for
false advertising and doctor payoffs. In both cases no one goes to jail.

NEWARK -- A
27-year veteran of the United States Postal Service was arrested Monday for
pilfering $500 in gift cards and several DVDs from the mail he was tasked with
storing at the city’s main post office, authorities said.

The alleged thief was also
seen rifling through the mail of State Sen. Ronald Rice several times last
month.

Kevin Jones, 56, of Newark, is
the fifth postal service employee arrested on theft charges since the Essex
County Prosecutor’s Office and the U.S. Postal Service opened a joint
investigation into employee theft at county post offices last summer, said Pete
Sepulveda, Assistant Prosecutor for Professional Standards.

“Each case in itself is
unremarkable, but to see how well the operation and the cooperation has worked
between a federal agency and the prosecutor’s office, to have five arrests on
this is quite successful,” he said.*****

Another story:

Three years ago, Gina Ray, who
is now 31 and unemployed, was fined $179 for speeding. She failed to show up at
court (she says the ticket bore the wrong date), so her license was revoked.
When she was next pulled over, she was, of course, driving without a license.
By then her fees added up to more than $1,500. Unable to pay, she was handed
over to a private probation company and jailed — charged an additional fee for
each day behind bars.

For that driving offense, Ms.
Ray has been locked up three times for a total of 40 days and owes $3,170, much
of it to the probation company. Her story, in hardscrabble, rural Alabama,
where Krispy Kreme promises that “two can dine for $5.99,” is not about
innocence.

It is, rather, about the
mushrooming of fines and fees levied by money-starved towns across the country
and the for-profit businesses that administer the system. The result is that
growing numbers of poor people, like Ms. Ray, are ending up jailed and in debt
for minor infractions.

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